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23 February 2017
ISSUES PAPER
REDUCING UNNECESSARY REGULATORY BURDENS (RURB) ON BUSINESS:
COURIER SERVICE
The Courier Service Issues Paper
MPC is releasing this issues paper to assist individuals and organizations to prepare
and participate in the review. It contains and outlines:
• the scope of the review
• matters about which the MPC is seeking comment and information
• information about how you can get involved in the review.
Participants may add any comment which they consider relevant to the review.
Due date for submissions: 20 April 2017
Submissions can be made by email or fax to:
Email : [email protected] and [email protected]
Fax: 03-7960 0206
Contacts:
Mr. Mohammed Alamin Rehan
Tel: 03-7960 0173
Email: [email protected]
Ms Lee Wan Wei
Tel: 03-7960 0173
Email: [email protected]
Contents
1.0 Terms of Reference ................................................................................................................... 1
1.1 Making a Submission or Meeting with the MPC ........................................................................... 2
1.1.1 Use of information ................................................................................................. 2
1.1.2 Confidential Information ........................................................................................ 3
2.0 The proposed scope of the study ......................................................................... 3
2.1 What is to be covered by this study? ............................................................................................ 3
2.2 What are unnecessary regulatory burdens and restrictions on competition? ............................. 8
2.2.1 What regulation will be covered in this review? ................................................ 8
2.2.2 Why do governments regulate courier service? ............................................... 8
2.2.3 What are regulatory burdens? .......................................................................... 9
2.2.4 What are unnecessary regulatory burdens? ..................................................... 9
3.0 Our approach ..................................................................................................... 10
3.1 Structure, conduct, performance ......................................................................................... 10
3.2 Where regulations impact on the courier service sector ..................................................... 10
3.3 Concerns businesses have with any aspect of the regulation of the courier service ........... 11
4.0 An invitation to comment ................................................................................... 11
5.0. Possible Issues .................................................................................................. 12
5.1 Licensing and Inspection Requirements ............................................................................... 12
5.2 De minimis Thresholds .......................................................................................................... 13
5.3 Warehousing ......................................................................................................................... 14
5.4 Logistics and Transportation ................................................................................................. 17
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 1
1.0 TERMS OF REFERENCE
The Malaysian Productivity Corporation (MPC) is undertaking a study on reducing
unnecessary regulatory burdens on the courier service sector. This study arises from
the mandate given to MPC under the 11h Malaysia Plan to undertake programme on
Reducing Unnecessary Regulatory Burdens (Budget Code: Modernising Business
Regulation).
Without presumption, this project shall highlight concerns of the industry players with
the current regulatory framework in relation to the Courier Service sector and the
feedback form the relevant regulators. The report will focus on the regulations that
businesses consider burdensome to them (in complying with the requirements) and
investigate the purpose or intent of such regulations with a view to reducing or
removing any unnecessary regulatory burdens. MPC is interested not only in written
rules but also on how they are administered by the regulators. In addition, the MPC
will also be seeking to identify regulations which creates unnecessary barriers to
competition.
The purpose of this issues paper is to outline what is being reviewed and our
proposed approach to this review so that interested parties can find out how they
may participate. MPC may also directly contact interested parties, public and private
sector representatives, with expertise or experience in the Malaysian Courier Service
Sector, who can assist in the study.
The issues identified in this paper represent those that seem most relevant at this
stage and may change as MPC receives more feedback from interested parties. The
paper draws on a range of reports on the courier service sector, including the MPC’s
reviews already conducted on this topic. Hence, parties should feel free to raise any
other issues they consider relevant to this study.
The responses to this issues paper, along with other information gathered through
targeted interviews and research, will help to inform the development of the draft
report, which will set out options for addressing unnecessary regulatory burdens in
the courier service sector.
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 2
Updates on the progress of this review will be provided on MPC’s website.
1.1 Making a Submission or Meeting with the MPC
Anyone is invited to make a submission (written or electronic) on the issues relating
to the courier service sector. A submission can range from a short letter on a single
issue to a more substantial document covering a range of issues. Your submission
may respond to any or all of the issues outlined, depending on your interest. In
addition, you are welcome to raise other issues and provide other information that
you think might be relevant to this study. Where possible any views outlined in the
submission should be supported by evidence, such as references to independent
research, facts and figures, or examples. While every submission is welcome,
multiple, identical submissions do not carry any more weight than the merits of an
argument in a single submission. Please also include your name, or the name of
your organisation, and contact details. Should you wish to remain anonymous,
please indicate this and the MPC will keep your name confidential.
Submissions may be sent through the Corporation’s website http://www.mpc.gov.my/,
or email or post. Electronic submissions should be in Adobe Acrobat or Microsoft
Word or compatible format. In addition, an electronic submission form is available at
http://www.mpc.gov.my/. If you would rather meet with the MPC instead of putting in
a submission please indicate this on the expression of interest form at the back of
this paper.
1.1.1 Use of information
The information provided in submissions will be used to inform our analysis and the
advice given to government on unnecessary regulatory burden for courier service
sector, to gauge the position and preference of the stakeholders and more generally
to increase MPC’s knowledge of the courier service sector. We may contact
submitters directly if we require clarification of any matters in the submission.
We intend to post written submissions received on the issues paper on MPC’s
website at http://www.mpc.gov.my/. Therefore, please read the advice below
regarding confidential or private information.
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 3
1.1.2 Confidential Information
If your submission contains any confidential information, please indicate this on the
front of the submission. In addition, the confidential information should be clearly
marked within the text, for example, by including the confidential information in
square brackets or as a separate appendix.
If you wish to provide a submission with confidential information, we prefer that you
also provide a separate public version of the submission which excludes the
confidential information. If provided, the public version will be posted on MPC’s
website.
2. The proposed scope of the study
2.1 What is to be covered by this study?
The study will emulate the approach used by the Australian Government Productivity
Commission (AGPC) and the team will be guided by a regulatory expert Mr Goh
Siew Seng. The team will select a sample of courier service companies across the
country and will interview the senior management personnel to identify the regulatory
issues of concern. Based on the principles of good regulatory practices, the team will
formulate feasible options for further deliberation. These issues and options will be
subject to further consultation with relevant stakeholders in order to develop concrete
recommendations that will reduce unnecessary regulatory burdens. The figure below
summarizes the study process for this review.
Courier refers to a person or a company that delivers packages and documents.
Courier service differ from ordinary mail services as they promise speedy delivery,
ensure security, provide tracking services and offer specialisation and tailor-made
services. Hence, courier service may cost more than the standard mail services. The
courier service industry is seamless as it can operate within a specific town, city or
go beyond regional, national or international borders. Courier service engage
different types of transportation vehicles such as bicycles, motorcycles, lorries, trains
and aircrafts to deliver all their consignments.
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 4
The courier service is essential to the efficient functioning of the economy and
society as a whole. Very few sectors in Malaysia come close to the level of physical
connectivity with households, businesses and retail network across the country like
the courier service sector.
Standard Services on Offer
Delivery of large and heavy items
Safely and Securely transported
Signature required delivery for important items
Worldwide delivery
Next day delivery
Fast track delivery
Ability to track your delivery
Courier service were first developed as a means to provide customers with an
alternative way to send their deliveries. They are viewed as a more secure service
and beat the typically slow delivery of traditional options. Couriers are also much
cheaper, especially when factoring large or heavy Items into the equation.
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 5
This popularity in courier service was triggered mostly by the Internet’s arrival,
especially as customers began shopping online in greater volume. As shoppers
could order multiple items at once and have them shipped to their home, there
became a need to ensure these deliveries were both fast and safe.
In undertaking the review, MPC will:
1. identify areas that are:
a) unnecessarily burdensome, complex or redundant;
b) duplicate regulations or the role of regulatory bodies, including in other
jurisdictions; and/or
c) unnecessarily restrict competition
2. develop a short list of priority areas for removing or reducing regulatory burdens
which impact mainly on the sector under review and have the potential to deliver
the greatest productivity gains to the economy
3. for this short list, identify regulatory and non-regulatory options which might
alleviate the regulatory burdens,- including those which will enhance regulatory
consistency across jurisdictions, or reduce duplication and overlap in regulation
or in the role of regulatory bodies - and, where appropriate, recommend which
option/s are the most suitable.
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 6
The following courier service value chain defines the stages of courier service.
Compliance with regulatory requirements affects all of these stages and is often
treated as one of the processes involved in the courier service industry. Often parties
involved in courier service encounter problems/issues over complying with the
regulatory requirements.
Below is the list of Acts/ guidelines/ standards governing the courier service industry:
Business Establishment
Operations Termination
Incorporation of Company
Courier License
Authorities:
Company
Commission of
Malaysia (CCM)
Malaysia
Communications
& Multimedia
Commission
(MCMC)
Customs
Department
Local Govt
Energy
Commission
Fire & Rescue
Dept
Public Works
Dept
Logistic Advertising
Authorities:
Local Government
Energy Commission Malaysia Communications
& Multimedia Commission (MCMC)
Road Transport Dept
Immigration Dept
SPAD
Customs
Fire & Rescue
SOCSO & PERKESO Atomic Energy Licensing
Board
Warehouse
Importers
Exporters
DOSH
Surrender of License
Authorities:
Malaysia Communications
& Multimedia Commission
Human Resource
Immigration
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 7
Key Malaysian Federal
Regulations
Key Stages of
Cycle
Key state/local government
involvement/regulations
Companies Act 1965
Registration of Business Act 1956 ( Act 197)
Postal Services Act 2012 (Act 741)
Local Government Act 1976
Pre- Operation
Portal Services (Licensing)
Regulations 2015
Occupational Safety and Health Act 1994, Act 514
Road Transport Act 1987
Land Public Transport Act 2010 (Peninsular)
Commercial Licensing Board Act 1987 (Sabah & Sarawak)
Environmental Quality Act 1974 (Act 127)
Street, Drainage and Building Act, 1974 (Act 133)
Pesticide Act, 1974 (Act 149)
Energy Commission Act, 2001 (Act 610)
Fire Services Act, 1988 (Act 341)
Atomic Energy Licensing Act, 1984
Employment Act, 1955 (Act 265)
Employees Provident Fund 1991
Employer Social Security Act 1969
Immigration Act 1959/63
Environmental Quality Act 1984
Customs Act 1967
Goods and Service Tax Act 2014
Operation
Guidelines on Occupational Safety and Health In Courier Service Industry 2015
Social Security Organisation (SOCSO) Reporting Requirement
International Air Transport Association (IATA)
DOSH
Environmental regulations
EQ (Clean Air) Regulations 1978
EQ (Control of Emission from diesel Engines ) Regulations 1996
EQ (Control of Emission form Petrol Engines) Regulations 1996
Environmental Quality (Scheduled Wastes) Regulations 2005
Signboards and outdoor
advertisement license and/or
permit
Postal Services Act 2012 (Act 741)
Termination
Portal Services (Licensing)
Regulations 2015
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 8
2.2 What are unnecessary regulatory burdens and restrictions on
competition?
2.2.1 What regulation will be covered in this review?
MPC is assessing both written regulation and the administration and enforcement of
regulations. With regards to written regulation, all types of legislative instruments
used by Malaysian Federal and State Governments as well as rules set by a Local
Government, such as by-laws, guidelines, circulars, code or policies are potentially
under review. The conditions contained in licences, permits, consents, registration
requirements and leases are also under review where they impose a compliance
burden or restrict competition,
2.2.2 Why do governments regulate courier service?
When regulation is used appropriately it addresses market imperfections which
would otherwise result in less than optimal levels and qualities of output. The result
is a loss of economic and social welfare. Market failure exists when the competitive
outcome of markets is not efficient from the point of view of society as a whole. This
is usually because the benefits that the free-market offers on individuals or
businesses carrying out a particular activity diverge from the benefits to society as a
whole. For courier service, the main market imperfections of relevance are those
arising from:
asymmetries in knowledge, such as where:
the employer knows more about workplace risks than the employees
the courier companies know more about the quality of a service than the
customers
customers do not have access to full information about the financial viability of
the courier company servicing them
negative externalities, such as where:
the use of vehicles adversely impacts on environment, such as smoke
emission from the vehicles or noise from warehouse in sorting documents to
near-by residents, or dense housing
barriers to competition, so that:
not all company have financial capability to meet the capital requirement to
operate courier service
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 9
2.2.3 What are regulatory burdens?
Regulatory burdens arise from the costs imposed by regulation and enforcement that
would otherwise not arise for businesses. Where requirements from regulation
create a change in business behaviour and practices, a regulatory burden can be
said to exist. Regulations can adversely impact on business in various ways. Most
fall under the following four categories of cost impacts:
a) administrative and operational requirements, such as:
i. reporting, record keeping
ii. getting legal advice, training
b) requirements on the way goods are produced or services applied, such as:
i. prescription on production methods
ii. occupational registration requirements, requiring professionals to use
particular techniques
c) requirements on the characteristics of what is produced or supplied, such as:
i. being required to provide air bags in all motor vehicles
ii. requiring teachers or trainers to cover particular topics
d) lost production and marketing opportunities due to prohibitions, such as:
i. when certain products or services are banned.
2.2.4 What are unnecessary regulatory burdens?
While it is usually necessary that some burden is placed on business for regulation
to achieve its objectives, where it is poorly designed or its enforcement and
administration is not implemented well, it may impose greater burdens than
necessary.
Examples of unnecessary burdens are:
a) excessive coverage of the regulations, including regulatory creep‘, so that
regulations that encompass more activity than was intended or is needed to
achieve their objectives
b) subject-specific regulations that cover much the same ground as other generic
regulation
c) prescriptive regulation that unduly limits flexibility, such as preventing:
i. businesses from meeting the underlying objectives of regulation in different
ways
ii. use of the best technology
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 10
iii. product changes to better meet consumer demand
d) overly complex regulation
e) unwieldy licence application and approval processes
f) excessive time delays in obtaining responses and decisions from regulators
g) rules or enforcement approaches that inadvertently provide incentives to operate
in less efficient ways
h) unnecessarily invasive regulator behaviour, such as overly frequent inspections
or information requests
i) an overlap or conflict in regulations and/or the activities of different regulators
j) inconsistent application or interpretation of regulation by regulators.
This review aims to identify areas where regulation can be improved, consolidated or
simplified to reduce unnecessary burdens to the courier service industry without
compromising underlying policy objectives. It will also examine regulation and
enforcement practices that might impede competition and productivity in the industry.
3.0 Our approach
3.1 Structure, conduct, performance
The study will emulate the approach used by the AGPC to identify regulatory
burdens of most concern to the Malaysian courier service sector and identify which
of these burdens are unnecessary in that they could be reduced without
compromising the achievement of the objectives of the regulations. It will review any
regulations and guidelines that could impair the sector’s performance.
3.2 Where regulations impact on the courier service sector
The first stage will be to agree on the best representation of courier service’s value
chain (perhaps by modifying the tentative value chain presented above).This will
help in identifying the particular stages of the courier service process where
regulation impacts and those regulations that merit further study, that is those
regulations which appear to impose unnecessary burdens on business or to
unnecessarily restrict competition. Where necessary, these stages may be further
categorised in relation to different segment/type of the courier service if regulations
constrain the courier process in a particular segment.
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 11
3.3 Concerns businesses have with any aspect of the regulation of the
courier service
MPC is interested in the views of interested parties on concerns they have with
regulations and/or the way they are administered or enforced. Without limiting, in any
way, the issues participants may wish to raise, the sort of areas which may be
relevant include:
a) Licencing requirement
b) The time and financial costs directly involved in complying with regulations, such
as form filling, mandatory returns and etc.
b) Regulatory requirements which limit a business’s capacity to enter parts of the
industry or to expand.
c) Factors which affect a business’s decision to operate internationally.
d) Regulations on customs clearance and customs duty.
e) Regulations on matters pertaining to logistics.
f) Regulatory requirements/enforcement throughout the courier service process
such as building & warehouse permits, safety at processing sites, labours and
other related matters.
4.0 An invitation to comment
The MPC is seeking feedback from interested parties, public and private sector
representatives, with expertise or experience in the Courier Service Sector, who can
assist in the study. Below are some of the information sought that will help in our
review:
1. Which regulations concern you the most? Why?
2. Which regulations are the hardest to comply with?
3. Which regulations do you think are too burdensome given what they are trying to
achieve?
4. Do you think any regulations are not justified at all?
5. Are some regulatory requirements inconsistent?
6. Do you consider inspectors and other regulatory administrators do a good or a
poor job? In what ways?
7. Do you find inspectors and administrators are consistent in their decisions?
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 12
8. Do you find they are helpful or unhelpful in advising you how to comply? Are
there any publicly available guidelines?
9. How long do regulators take to respond to applications, etc?
10. Do you have any suggestions for reducing the burden of compliance of
regulations?
5.0. Possible Issues
5.1 Licensing and Inspection Requirements
To operate a courier service business, a company is subjected to various licensing
requirements:
a. Courier Service license - issued by MCMC (Postal Services Act 2012 (Act
741))
b. Operator Licence - For all operators of land public transport and goods
vehicles the Operator Licence is required from the Land Public Transport
Commission (SPAD).
c. Vehicle License - For each goods vehicle a Type A licence (Permit A) is
required from SPAD for Peninsular Malaysia and Commercial Vehicles
Licensing Board (CVLB) for Sabah and Sarawak
d. Good Vehicle Inspection – All commercial vehicles need to undergo a
roadworthiness inspection at PUSPAKOM every 6 months. (Road Transport
Act 1987)
e. Goods Driving License (GDL) - GDL is required for all drivers of commercial
vehicles carrying goods, issued by the Road Transport Department (JPJ).
f. Premise License - For using the premise
g. Advertisement License - For premise signboard, lamp post or outdoor display
advertisements, issued by the local authority.
h. Weighing Machine License - For using weighing machines (KPDNKK).
i. Service Tax License & Service Tax – A company/individual may be required
to apply for a Service Tax Licence from Royal Malaysian Customs
Department. The service tax collected must be paid to Customs.
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 13
j. Fire Safety Inspection - For inspecting compliance of premise to fire safety
standards (JBPM).
k. Occupational Safety And Health Notification (DOSH) – A company/Individual
is required to notify Department of Occupational Safety and Health once you
acquire, occupy and operate a premise (DOSH).
1. Do you think the licensing requirements and inspections a burdensome?
Why?
2. Do some of the regulations overlapping?
3. Which part of the regulatory requirements is seen as burdensome? Any
suggestion to improve it?
4. Any overlapping of functions amongst the regulators?
5.2 De minimis Thresholds
De minimis refers to the minimum value of the goods which no duties and taxes are
being collected by the Customs. A de minimis regime provides streamlined border
clearance and exemption from customs duties and other taxes. These features
generate economic benefits by refocusing public revenue collection on more efficient
revenue sources, reducing the costs borne by importers, and accelerating the
delivery of imports.
De minimis thresholds represents a significant step in making it easier to trade
across borders. It reduces the compliance costs imposed on importers and
accelerates delivery of the merchandise. Documents preparations and manpower
could be reduced hence improved efficiency and profitability. With the de minimis
threshold, many pain points are relieved, giving small businesses the ability to get
their products to the designated countries with more speed and efficiency.
The de minimis thresholds also allows governments to refocus their revenue
collection efforts on those parts of the indirect tax base that yield higher net revenue
thus benefits the government in terms of resource saving in government
administration.
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 14
Having de minimis thresholds would also enhance trade and business facilitation,
effective delivery of services and reducing the cost of doing business.
1. Does current regulation on de minimis justified? Why?
2. What does the impact of current regulation to your business and the industry?
3. Do you have any suggestion to reduce the burden in complying with the
regulation?
5.3 Warehousing
Warehousing considers the storing of goods. It is part of the larger process of
warehouse management, which includes picking, shipping, and planning.
Transportation and warehousing are subsections of logistics and can be regarded as
the most important parts in international supply chains (Tuzkaya and Önüt, 2009).
There are three (3) types of licences, depending on the warehousing requirements of
the operator. An operator can choose to operate as an ordinary warehouse, a Public
Bonded Warehouse or a Private Bonded Warehouse.
Investors intending to provide warehousing services are required to incorporate a
company under the Companies Act, 1965.
1.1 Licensing and Registration
(i) Ordinary Warehouse Licence
A company that wishes to provide ordinary warehousing services must apply for a
licence to the relevant Local Authority.
The following approvals must be obtained before applying to the Local Authority:
Approval from the Department of Environment (DOE) when operators store
hazardous goods.
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 15
Approval from the Fire and Rescue Department and other Technical Agencies
to ensure that the premise is equipped with an adequate number of fire
extinguishers and safety alarm systems.
Certificate of Completion and Compliance (CCC) from the Local Authority
which is an official document to acknowledge that the building is safe for
occupation.
The CCC which was implemented in 2007 replaces the Certificate of Fitness
or Occupation (CFO) previously issued by the Local Authority. The CCC is
issued by the project’s Principal Submitting Person (PSP) who is a
Professional Architect, Professional Engineer or a Registered Building
Draughtsman.
(ii) Public Bonded Warehouse Licence
A Public Bonded Warehouse operates as a central storage for the distribution
of bonded goods (i.e. goods on which Customs duties and taxes have not
been paid) in the country and for international trade, catering for the general
public.
Public Bonded Warehouses that store different categories of goods must
comply with the following conditions:
Category of Goods Minimum
Warehouse
Space
(square Feet)
Minimum Paid-Up
Capital (RM)
Minimum Value
Of Goods
Warehoused
Critical Goods 50,000 1,000,000 NA
Non-Critical Goods 20,000 250,000 NA
Source: MIDA
(iii) Private Bonded Warehouse Licence
A Private Bonded Warehouse is a central storage and distribution centre for
bonded goods (i.e. goods on which Customs duties and taxes have not been
paid), of the companies and its related companies.
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 16
Private Bonded Warehouses that store different categories of goods must
comply with the following conditions:
Category of Goods Minimum Warehouse Space (square Feet)
Minimum Paid-Up
Capital (RM)
Minimum Value
Of Goods
Warehoused
Critical Goods NA 150,000 5,000,000
Non-Critical Goods NA 100,000 5,000,000
Source: MIDA Activities that can be carried out in these warehouses are as follows:
Warehousing
Bulk breaking
Re-packaging
Re-labelling of imported goods
Consolidation
Entreport
Devending
A company that wishes to provide public or private bonded warehousing services
must apply to the Royal Malaysian Customs Department.
The following approvals must be obtained before applying to the Royal Malaysian
Customs Department:
Approval from DOE when operators store hazardous goods.
Approval from the Fire and Rescue Department and other Technical
Agencies.
CCC from the Local Authority.
1.2 Other Licensing and Registration
A Public or Private Bonded Warehouse operator that is licensed under Section 65 of
the Customs Act, 1967 can be given permission to act as an agent for transacting
businesses relating to the import or export of goods that are stored in the licensed
warehouse. For this purpose, a warehouse operator is required to obtain a Freight
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 17
Forwarding Agent/Customs Agent Licence and/or Shipping Agent Licence and a
Service Tax Licence.
The Service Tax Act, 1975 shall apply throughout Malaysia except Langkawi,
Tioman, Labuan, Free Zones and ‘Joint Development Area’. Effective 1 January
2011 the rate of service tax is 6%.
Applications for the above licences except for Customs Agent Licence should be
submitted directly to the Royal Malaysian Customs Department. Before acquiring a
Freight Forwarding Agent/Customs Agent Licence from the Royal Malaysian
Customs Department, the company must obtain an International Integrated Logistics
Services (IILS) status from MIDA.
1.3 Equity Policy
Ordinary Warehouse: There is no equity condition imposed by the Royal
Malaysian Customs Department. Investors only need to obtain licence from
the local authority.
Public Bonded Warehouse: A company must have at least 30% Bumiputera
equity.
Private Bonded Warehouse: There is no equity condition imposed by the
Royal Malaysian Customs Department.
1. Are there any disparity in regulations and policies? What are they?
2. Are there clear regulations in establishing and operating a warehouse?
3. Are there overlapping of regulations and inspections in establishing and
operating a warehouse?
4. Is there proper monitoring of the warehouse?
5. Are the requirements, fees and categorisation differ among the local councils?
5.4 Logistics and Transportation
To a courier service company, customers’ satisfaction is crucial in gaining
customers’ loyalty. Timeliness is one factor that determine customers’ satisfaction
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 18
and this relates to logistics. Logistics forms an important function to a courier service
provider in delivering its services and logistics is a cost to the company. Having
sufficient fleets of vehicles and experience vehicles operators/drivers ensures
smooth and reliable services. Acts that govern logistics in Malaysia are Road
Transport Act 1987, Land Public Transport Act 2010 (Peninsular) and Commercial
Licensing Board Act 1987 (Sabah & Sarawak).
1. Are there any regulatory issues pertaining to transport licensing?
2. Are there any issues on regulatory coordination across transport modes?
3. Are there overlapping regulations and guidelines? What are they?
4. Are there any overlapping functions among the regulators? Do they create
unnecessary burdens?
5. How effective are the regulators/enforcers in discharging their duties?
RURB ISSUES PAPER: COURIER SERVICE
COURIER SERVICE page 19
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Due date for submissions
Please send submissions to the MPC by 20 April 2017
Attachment : Expression of interest
RURB ON COURIER SERVICE
Please complete and submit this form with your submission:
By email: [email protected] /[email protected] OR by fax: (03) 7960 0206
Or by post: Malaysia Productivity Corporation
A-06-01, Tingkat 6, Blok A, PJ8
No.23, Jalan Barat, Seksyen 8
46050 Petaling Jaya, Selangor
Organization……………………………………...……………………………………..
Address………………………………………..…………………………………
………………………………………………… State & Postcode
Principal contact ………………………….. Phone ………………….…
Position……………………………………… Fax ………………….…
Email address……………………...………. Mobile ………………….…
Please indicate your interest in this review:
Be informed of developments including receiving the draft report
Would like to be interviewed by the MPC
Would like to make a submission
Nature of your activity